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CHAPTER XIV -- MANAGING YOUR MORTGAGE

LESSON 29: REFINANCING

(continued from previous page)

Cash-out refinance vs. home equity loan
If a refinancing with cash out pushes the loan-to-value over 80 percent you'll have to pay private mortgage insurance. A refinancing combined with a home equity loan can help you avoid that situation. But if you have enough equity to get cash out and keep the first mortgage under the 80 percent loan-to-value, then refinancing is the smarter option.

You may be able to reduce your closing costs by refinancing through the same lender that currently holds your mortgage or collects your payments. That's because that company may have some of the information needed to make a loan in its files already.

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CalculatorShould you refinance your mortgage?


"When considering whether to refinance, don't be greedy! Every time there is a refi boom, about 50 percent of customers lose out because they want to wait for another one-quarter-point dip."
Chris Weimar, Loan Search, West Orange, N.J.

"When you refinance, ask the lender for the reissue rate for title insurance."
John DeGuenther, American Home Mortgage Inc., Atlanta

"Just because your payment has been current and you have owned your house for a while, it does not mean your loan will be approved in a refinance transaction."
Kris Taraz, Inhouse Capital, La Jolla, Calif

 

 

 

 

 

TABLE OF CONTENTS

CHAPTER I
  Lesson 1
  Quiz

CHAPTER II
  Lesson 2
  Quiz

CHAPTER III
  Lesson 3
  Lesson 4
  Lesson 5
  Quiz

CHAPTER IV
  Lesson 6
  Lesson 7
  Quiz

CHAPTER V
  Lesson 8
  Lesson 9
  Quiz

CHAPTER VI
  Lesson 10
  Lesson 11
  Quiz

CHAPTER VII
  Lesson 12
  Lesson 13
  Lesson 14
  Quiz

CHAPTER VIII
  Lesson 15
  Lesson 16
  Lesson 17
  Lesson 18
  Quiz

CHAPTER IX
  Lesson 19
  Quiz

CHAPTER X
  Lesson 20
  Quiz

CHAPTER XI
  Lesson 21
  Quiz

CHAPTER XII
  Lesson 22
  Lesson 23
  Lesson 24
  Quiz

CHAPTER XIII
  Lesson 25
  Lesson 26
  Lesson 27
  Quiz

CHAPTER XIV
  Lesson 28
  Lesson 29
  Lesson 30
  Quiz

Definitions





RELATED STORIES

What will refinancing do for you?

Original lender's often the best source for refinancing

Protect yourself against mortgage scams and screw-ups

Cash-out mortgage refinancing vs. refinancing plus a home equity loan

 

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